test 1 notes - POL 213 C Notes Chapter 1 What is business:...

POL 213 C Notes Chapter 1 • : What is business a company that provides goods and services to better the people • : . What is government the structure that provides for people Sets up the rules and processes • : What is society a group of people • : . What is ideology a group of beliefs and ideas that people follow • : What is a social contract government is obligated to follow the . people People obey the government as long as the government . protects the people The same works with business so the business . respects society while society makes money for legitimate business . Business must remain legitimate or will not be protecting society • : Market capitalism model business interacts indirectly with society . through the market without government intervention In a perfect , . world this follows the social contract • : Dominance model Business and government dominates the . masses It was believed that a few businessmen worked with the . government to control the country They work for their own benefit . and are not good for society • : Countervailing forces model no one dominates society and

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. everyone is dependent upon one another Everything interacts with , , everything meaning if society needs something business will make . , it because business needs societies money In this model business . has a duty to society to create what is demanded • : Stakeholder model a business can have primary and secondary . stakeholders It is considered better that the countervailing forces model because business can decide who effects the business more . and then they can provide for that group more than another • : Strategic management part of the stakeholder model and deals . with the relations that business has with its stakeholders They . have better relations with those that are more important to them – Chapter 2 How business changes with the environment • – Globalization worldwide business • – Liberalization people will adapt and become individuals • – Technology technology will always advance • Business is very volatile because of the rapid changes in . technology Things change so quickly that business must adapt . extremely quickly • : Economic environments different areas in the world are different . economic environments Where one location may spend a lot of , . money another may not

• : Government Environment government rules and regulations affect . the daily operations of business Government may also create rules , . . . that allow for greater spending i e lowering the interest rate • : Legal environment companies must lookout for business and the . law is there to protect both of them • : Cultural environment culture affects business because people change so business must adapt to the needs and wants of their . , customers Companies may create one thing but as soon as the , . customers demand something else they must adapt • : Natural environment business must try to protect the . environment The environment also affects the way that they

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